India: Kingfisher beer losing market share to high-end foreign beers

Though Kingfisher is still the largest beer brand in India, it has lost 4.3% market share by volume between 2011 and 2016, according to data from market researcher Euromonitor marking the steepest decline among the top beer brands in India during this time, Moneycontrol.com reported on December 26.

India’s homegrown beer brand, which has been a local favourite for years, has been gradually declining in market share as urban Indians develop a liking for high-end foreign brands.

Market researcher Euromonitor reports that though Kingfisher is still the largest beer brand in India, it has lost 4.3 percent market share by volume between 2011 and 2016. This is the steepest decline among the top beer brands in India during this time.

On the other side, international beer brands are gaining more momentum. Case in point: the Dutch beer maker Carlsberg A/S's Tuborg brand is now India's second-largest beer by volume with 11.1 percent market share, a near five-fold jump since 2011. The brand's flagship beer, Carlsberg, has also doubled in market share value since 2011.

Anheuser-Busch InBev NV, which currently stands as the world’s biggest beer manufacturer, has also been able to accelerate its market share 5 times its value in 2011. Its main beer brand Budweiser has witnessed a near five-fold jump from 2011 to 4.9 percent in 2016.

AB InBev has also acquired Haywards in India. Haywards is India's third largest beer by volume share worth 10.7 percent. However, even Haywards has lost its market value since 2011, when it was 14.6 percent.

Though Haywards and Kingfisher have higher alcohol content in their beers as compared to foreign beer brands they don't seem to be the first choice.

Foreign beer brands are instead the preferred drink because of a marketing strategy which positions them as the first choice for the premium urban consumers by sponsoring events that target the young working urbane population in Indian cities. Budweiser heads a series of music events like Electric Daisy Carnival and Tomorrowland while Carlsberg leans more towards sponsoring sports events like the football tournament UEFA Euro in India.

With the options from local breweries like Doollalys and Toit, the Indian customer is spoilt for choice.

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